FYI Resources Ltd (ASX:FYI) has appointed global engineering firm Hatch Ltd to work on its jointly developed high purity alumina (HPA) project.
Under the deal, Hatch will facilitate engineering studies for the project’s demonstration plant, bringing it one step closer to producing HPA for the battery, sapphire glass and technology markets.
FYI is developing the HPA project with development partner Alcoa (NYSE:AA) of Australia under a three-phase deal inked in October last year.
Essentially, the approach paves the way for both parties to enter a joint venture that serves as the foundation for commercial HPA production.
The demonstration facility falls under phase two of the plan, in addition to detailed engineering for a full-scale HPA plant that would produce about 9,000 metric tonnes of HPA per annum.
Phase three involves the construction and operation of the full-scale facility, with phases two and three subject to final investment decisions.
Alcoa (NYSE:AA) will fund its pro-rata share of project capital and make additional contributions to the demonstration and production facility construction costs, subject to final investment decisions, in consideration for its 65% stake in the project, while FYI will retain 35%.
Ultimately, FYI believes this partnership structure highlights Alcoa (NYSE:AA)’s operational and execution strengths while leveraging its own HPA process flowsheet.
Fast forward to today, and Hatch was appointed as the project’s engineer following an extensive review, culminating in a short-list of six international engineering firms.
Speaking to the development, FYI Resources managing director Roland Hill acknowledged Hatch as the most suitable engineering group to provide the specialised engineering required for the HPA project development.
“Hatch’s appointment is a significant step in the development of the HPA project as proposed under FYI’s definitive feasibility study,” he explained.